Card Chargebacks

PXP Financial supports all stages of the Dispute lifecycle for Card Chargebacks, covering the following payment methods:

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Notes:

• Maestro Chargebacks are covered by the ECMCChargeback payment method
• Refund Chargebacks are currently not supported
• In most cases the Dispute lifecycle will not extend beyond a standard Chargeback and possibly a ReverseChargeback
• Unlike most other Acquirers, PXP Financial will inform its merchants about the Arbitration stages of the Dispute lifecycle through Second Chargeback and Reverse Second Chargeback notifications

Notifications

By default, all notifications contain:

• The payment method used in the key-value pair contained in the handlePaymentStateChangeNotificationRequest.payment.paymentMethod field
• The payment state being notified in the key-value pair contained in the handlePaymentStateChangeNotificationRequest.payment.state.definition field. The following table shows the possible key-value combinations:

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Original Payment information

In addition to this, the new Chargeback notifications also contain the following new key-value pairs in the handlePaymentStateChangeNotificationRequest.payment.paymentDetails:

• OriginalPaymentID
• OriginalPaymentMerchantTransactionID
• OriginalPaymentMethodID
• OriginalPaymentMethodName

The notifications you receive are dependent upon your configuration in PaymentService. By default merchants receive notifications on the ChargedBackByProvider and ReturnedByProvider states.

Note: The Payment ID/Merchant Transaction ID returned by default for both ECMC and Visa Chargebacks and ReverseChargebacks will be the same as the Payment ID/Merchant Transaction ID of the original Deposit that is being charged back i.e. it will match that provided in the OriginalPaymentID field. This does not apply for the case where Visa Allocation workflows result in 2 partial ReverseChargebacks - in this case, the format of the Payment ID is "[OriginalPaymentID]-2".

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Second Chargeback Notifications

For Second Chargebacks there are two different types of notification which must be taken into account:

• Second Chargeback Notification of Settlement: A Second Chargeback has been created in our system due to a direct notification from the Schemes and will be deducted from your account during the next scheduled settlement cycle.
• Second Reverse Chargeback Notification of Settlement: The Second Chargeback has been reversed and will be reimbursed to your account during the next scheduled settlement cycle (note: this only applies to MasterCard).

Example handlePaymentStateChangedNotificationRequest for ECMCChargeback in state SettledChargeBackWithProvider:

<?xml version="1.0" encoding="utf-8"?>
<handlePaymentStateChangedNotificationRequest 
    xmlns="http://www.cqrpayments.com/PaymentProcessing"
    xmlns:xsd="http://www.w3.org/2001/XMLSchema"
    xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
  <payment xsi:type="paymentWithPaymentAccount">
    <merchantID>KalixaAcceptDEMO</merchantID>
    <shopID>KalixaAcceptDEMO</shopID>
    <paymentMethod>
      <key>224</key>
      <value>ECMCChargeback</value>
    </paymentMethod>
    <merchantTransactionID>15c727a2-9739-4cbd-bb29-0706d8f21066-226</merchantTransactionID>
    <paymentID>b5439f7d-2e08-4f6d-a913-95e498fc66a0</paymentID>
    <userID>277b2743-df05-498f-a6c3-eb5d02</userID>
    <paymentProvider>
      <key>92</key>
      <value>CQRUK</value>
    </paymentProvider>
    <amount currencyCode="EUR">50.0000</amount>
    <creationType>
      <key>6</key>
      <value>Provider</value>
    </creationType>
    <state>
      <id>239c6477-973e-443c-9ba1-d227d43ccbe8</id>
      <definition>
        <key>247</key>
        <value>SettledChargeBackWithProvider</value>
      </definition>
      <createdOn>2016-11-21T09:47:34.437</createdOn>
      <paymentStateDetails xsi:nil="true" />
    </state>
    <isExecuted>true</isExecuted>
    <baseAmount currencyCode="EUR">50.0000</baseAmount>
    <paymentDetails>
      <detail xsi:type="keyStringValuePair">
        <key>ProviderExternalID</key>
        <value>d8b61956-0862-45c5-9878-2a22322ee811</value>
      </detail>
      <detail xsi:type="keyStringValuePair">
        <key>OriginalPaymentID</key>
        <value>317082f3-8062-42f3-b8b8-42c551f50e1c</value>
      </detail>
      <detail xsi:type="keyStringValuePair">
        <key>OriginalPaymentMerchantTransactionID</key>
        <value>ShTest_ECMC_1811_03</value>
      </detail>
      <detail xsi:type="keyStringValuePair">
        <key>OriginalPaymentMethodID</key>
        <value>1</value>
      </detail>
      <detail xsi:type="keyStringValuePair">
        <key>OriginalPaymentMethodName</key>
        <value>ECMC Deposit</value>
      </detail>
    </paymentDetails>
    <paymentAccount>
      <paymentAccountID>0</paymentAccountID>
    </paymentAccount>
  </payment>
</handlePaymentStateChangedNotificationRequest>

Visa Rapid Dispute Resolution Program

Rapid Dispute Resolution (RDR) is a new optional service that gives issuers the ability to see an expedited resolution for their Visa and non-Visa disputes through Visa Resolve Online (VROL). This optional service allows issuers to seek an immediate credit to avoid the formal processing of a dispute. This expedited resolution would resolve the dispute in the next settlement window and block the acquirer/merchant from formally responding to the dispute. The objective is to minimise chargebacks by ensuring a transaction disputed by the cardholder is resolved without processing a chargeback/dispute.

Transactions are eligible to qualify for RDR once the following preconditions are met:

• User Issuer has enabled RDR through the enrolment process above
• Merchant/Seller has enabled RDR through connection with Verifi

Whenever we receive a notification for an automatically initiated refund by Visa, we will create a payment on our side and inform the merchant via shop notification. The name of the payment method is VISA Automatic Dispute Resolution Refund (Payment Method ID 411). Merchants must prepare to receive and handle shop notifications for automatically created refunds.

Please contact our Support Team at [email protected] or your account manager if you are subscribed for the RDR service so that we can perform the necessary configuration for you. PXP Financial can also subscribe you to the RDR service on request.

MasterCard Ethoca Alerts

MasterCard Ethoca alerts, like RDR, provide an expedited dispute resolution service. This is accomplished through a similar process to that described above.

When a refund is created to pre-emptively avoid a chargeback, the corresponding payment on our side will be created and informed to the merchant via shop notification. The name of the payment method is ECMC Refund (Payment Method ID 89). Merchants must prepare to receive and handle shop notifications for the refunds.

Please contact our Support Team at [email protected] or your account manager if you are subscribed for Ethoca alerts so that we perform the necessary configurations for you. PXP Financial can also subscribe you for Ethoca alerts on request.